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CA Final · Indirect Tax Laws · Levy of and Exemptions from Customs Duty

The Central Government notifies under section 28A that, because of a generally prevalent practice, duty on a certain imported good will not be required to be paid in excess of a lower amount. Amar Traders had already paid the full higher duty on such goods before the notification was issued. What is the position regarding its refund of the excess duty?

Amar can claim a refund of the excess duty. It is dealt with under section 27(2), but Amar must apply to the Assistant or Deputy Commissioner of Customs, in the prescribed form, within six months from the date the section 28A notification was issued.

  1. AThe refund is dealt with under section 27(2), and Amar must apply to the Assistant or Deputy Commissioner within six months from the date of issue of the notificationCorrect
  2. BNo refund is available because the duty was paid before the notification
  3. CAmar must apply to the Board within one year from the date of payment of duty
  4. DThe refund is automatic without any application

Explanation

Section 28A(2) says the duty paid which would not have been paid had the notification been in force is dealt with under section 27(2). The proviso requires an application in the form referred to in section 27(1) before expiry of six months from the date of issue of the notification. The other options contradict this.

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